@Slovakia:Economy
Economy - overview: Slovakia continues the difficult transition from a centrally planned economy to a modern market economy. It started 1999 faced with a sharp slowdown in GDP growth, large budget and current account deficits, fast-growing external debt, and persisting corruption, but made considerable progress toward achieving macroeconomic stabilization later in the year. Tough austerity measures implemented in May cut the overall fiscal deficit from 6% in 1998 to under 4% of GDP, and the current account deficit was halved to an estimated 5% of GDP. Slovakia was invited by the EU in December to begin accession negotiations early in 2000. Foreign investor interest, although rising, has not yet led to actual deals; several credit rating agencies have upgraded their outlook for the country. However, Slovakia's fiscal position remains weak; inflation and unemployment remain high; and the government is only now addressing the structural problems inherited from the MECIAR period, such as large inefficient enterprises, an insolvent banking sector and high inter-company debts, and declining tax and social support payments. Furthermore, the government faces considerable public discontent over the government's austerity package, persistent high unemployment - which reached an all-time high of 20% in December 1999 - rising consumer prices, reduced social benefits, and declining living standards. Real GDP is forecast to stagnate in 2000; inflationary pressures will remain strong due to further price liberalization; and little scope exists for further fiscal consolidation in the 2000 budget, which is based on rosier assumptions than nearly all private forecasts.
GDP: purchasing power parity - $45.9 billion (1999 est.)
GDP - real growth rate: 1.9% (1999 est.)
GDP - per capita: purchasing power parity - $8,500 (1999 est.)
GDP - composition by sector: agriculture: 5% industry: 33% services: 62% (1998)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: 5.1% highest 10%: 18.2% (1992)
Inflation rate (consumer prices): 14% (1999 est.)
Labor force: 3.32 million (1997)